The South Island-based business of failed childcare firm Easy Mind Ltd ceased to provide services from 5pm yesterday, liquidator Rodewald Hart Brown Ltd said.The closure will result in more than 60 job losses and leave up to 200 Otago and Southland famili
The South Island-based business of failed childcare firm Easy Mind Ltd ceased to provide services from 5pm yesterday, liquidator Rodewald Hart Brown Ltd said.
The closure will result in more than 60 job losses and leave up to 200 Otago and Southland families searching for alternative childcare arrangements, the Otago Daily Times newspaper reported.
Easy Mind assets in Hawke's Bay, Palmerston North, Feilding and Gisborne were sold to Scallywags Sprouts In-Home Childcare during the weekend.
Scallywaggs managing director Martin Ennor said his company would be offering employment to all current staff in the businesses his company purchased.
The liquidators said sales of businesses in Waikato and Coromandel were expected to be completed today.
Easy Mind was put into liquidation earlier this month. The business was founded in Hamilton in 2002 by early childhood teacher Clare Grace and her husband Fred. According to its website it has 15 centres in the Waikato, Whitianga, Gisborne, Hawke's Bay, Manawatu, Wairarapa, Otago and Southland.
Commenting on the closure of the South Island business, the liquidators said they were unable to secure short term cash to pay staff and educators and the Ministry of Education did not consider it appropriate to advance any further funding.
A proposal was made to the ministry that the liquidators considered would allow the Easy Mind Childcare service to continue to operate for three weeks at no net cost to the Government. This was not accepted by the ministry. The liquidator said the decision seemed to be based on concerns about previous financial dealings by the company with the ministry.
During the seven days of the liquidation there was a cash shortfall of $75,000. The liquidators had financed part of this but it was not possible to complete a sale of the South Island business within a short timeframe.
The liquidators acknowledged the support of ministry staff in the sale process.
